MicroStrategy reported heavy unrealized losses tied to its Bitcoin position even as the shares continued to trade at a premium to the company’s digital‑asset holdings. MicroStrategy’s market capitalization stood at $34.66 billion against a Bitcoin portfolio market value of about $44.95 billion.
MicroStrategy holds 713,502 bitcoins at an average purchase price of $76,052 per coin, representing a cost basis of $54.26 billion. With Bitcoin trading near $63,000 per coin, the holdings’ market value is roughly $44.95 billion, producing a price‑to‑NAV ratio of about 0.77x (market cap $34.66 billion divided by Bitcoin market value $44.95 billion).
The company recorded a net loss of $12.4 billion for the fourth quarter of 2025, driven largely by unrealized losses on digital assets. Reports cited unrealized write‑downs on the company’s crypto treasury in the range of $17.4 billion–$17.5 billion under current accounting treatment.
Some observers have referenced a narrower snapshot loss of $6.5 billion when Bitcoin traded nearer $67,000; at today’s lower price levels that unrealized loss widens to an estimated $9.31 billion against the firm’s cost basis.
Holdings, valuation and reported losses
Management faces a changed calculus now that MicroStrategy no longer enjoys a clear premium to NAV. Chief Executive Phong Le has signalled that an mNAV below 1.0, absent alternative capital access, could force sales of Bitcoin to meet financing needs. The company also reports a cash reserve of $2.25 billion, which it says can cover debt and dividends for more than 2.5 years, but that cushion narrows if market prices remain weak.
Market and credit dynamics complicate that stance. Analysts and investors have pointed to the erosion of the ‘free leverage’ effect that previously allowed MicroStrategy to issue shares or borrow against an elevated stock price to buy more Bitcoin.
For investors, product teams and compliance officers, the immediate implications are practical: equity‑linked funding for crypto accumulation has become more costly and operationally risky when market value falls below the asset base being financed. Liquidity and counterparty terms will be central to whether MicroStrategy can maintain its posture without dilutive capital raises or disposals.
Looking ahead, the company’s next quarterly disclosures and any discussions with creditors will shape near‑term strategy. Market participants will watch how management balances liquidity, debt service and the stated preference to retain Bitcoin in the face of an extended discount to NAV.
